Vodafone Idea Ltd (IDEA) AI Stock Analysis

• Market Cap: ₹1.01T
• Dividend Yield: N/A
• Average Volume (3M): 84.53M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: 3.81%
• EPS Growth: 39.18%
• Country: IN
• Employees: 9,670
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.49
• Shares Outstanding: 108,343,030,000
• 10 Day Avg. Volume: 77,103,532
• 30 Day Avg. Volume: 84,531,396
• PEG Ratio: 0.05
• Price to Book (P/B): -0.79
• Price to Sales (P/S): 1.27
• P/FCF Ratio: -23.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹9.50
• Price Target Upside: -15.71% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): -2.43
• Revenue Forecast (FY): ₹452.33B

• Rating: 45 Neutral
• Price Target: ₹9.00 ▼(-20.14% Downside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is primarily held down by weak financial performance, including ongoing losses and a balance sheet showing negative equity and high leverage. Technicals provide some support with price trading above major moving averages, but negative MACD and an unappealing valuation signal from a negative P/E keep the overall score in the mid-range.

Positive Factors

Recurring revenue base

Vodafone Idea’s core business is built on recurring consumer mobility and enterprise connectivity revenues plus interconnect fees and device/ancillary sales. This mix creates a structurally recurring cash inflow profile that supports predictability in revenue and underpins long-term service demand.

Operating cash generation

Positive operating cash flow indicates the company’s core telecom operations generate cash even amid losses. Sustained OCF gives management a structural funding source for network upkeep and short-term obligations, reducing immediate reliance on external financing while restructuring or cost measures continue.

Stabilizing operating performance

The reported slight EBITDA improvement alongside modest revenue growth signals early operational stabilization. If sustained, improving EBITDA margins and positive top-line trends help narrow losses, provide room for margin recovery, and support longer-term viability of the core service business.

Negative Factors

Negative equity & high leverage

Substantial negative shareholders’ equity and high leverage create structural solvency risk and constrain financing options. This weak capital structure limits the company’s ability to raise debt or equity on favorable terms and can hamper long-term investments in network capacity and technology upgrades.

Persistent losses and weak margins

Multi-year negative margins and recurring net losses erode capital and undermine sustainable profitability. Continued losses reduce internal funds for network investment and customer retention, making it harder to compete on service quality and pricing over the medium term without structural cost or revenue fixes.

Volatile and weak free cash flow

Volatile and declining free cash flow weakens the company’s ability to fund capex, spectrum obligations, and debt service from internal resources. Even with positive operating cash flow, negative FCF trends increase refinancing risk and reduce flexibility for strategic investments in the network.

Vodafone Idea Ltd Business Overview & Revenue Model

Company Description

Vodafone Idea Limited provides mobile telecommunication services in India. It offers voice and data services on 2G, 3G, and 4G technologies; broadband services; content services; digital and Internet of thing services; and other value added services, including entertainment, voice and SMS based, and utility services. The company also provides long distance and ISP services; passive infrastructure services; manpower services; fiber infrastructure services; and business and enterprise services. It also trades in mobile handsets, data cards, and related accessories. As of June 30, 2022, it had approximately 226.1 million mobile subscribers. The company was formerly known as Idea Cellular Limited and changed its name to Vodafone Idea Limited in August 2018. Vodafone Idea Limited was incorporated in 1995 and is based in Mumbai, India.

How the Company Makes Money

Vodafone Idea primarily makes money by selling mobile and connectivity services to consumers and businesses. Its key revenue streams include: (1) Consumer mobility service revenue: recurring revenue from prepaid and postpaid mobile subscribers for voice calling, mobile data usage, and bundled service plans; this is typically recognized as customers consume services (prepaid) or are billed periodically (postpaid). (2) Interconnect and roaming-related revenue: fees earned when calls/SMS/data originate on or terminate to other operators’ networks and when customers use roaming services, subject to applicable inter-operator arrangements and regulations. (3) Enterprise (B2B) services: revenue from providing connectivity and communications solutions to enterprises (e.g., corporate mobility, leased lines/private networks, internet connectivity, and managed/IoT-type services where offered); earnings come from contracted recurring charges, usage-based charges, and service/management fees. (4) Handset/device and other ancillary revenue: to the extent the company sells devices (directly or via bundled offers) or earns ancillary fees (e.g., service-related fees), it generates additional revenue; if specific amounts are not publicly broken out in the referenced context, null. Significant factors influencing earnings include subscriber base and mix (prepaid vs postpaid), average revenue per user (ARPU), data consumption growth, network coverage/capacity and quality, competitive pricing in the Indian telecom market, regulatory charges and license/spectrum-related obligations, and commercial relationships with other telecom operators for interconnection/roaming and with suppliers/partners for network equipment, distribution, and digital service ecosystems.

Vodafone Idea Ltd Financial Statement Overview

Summary

Financial statements indicate significant distress: persistent net losses and negative margins, a balance sheet with substantial negative stockholders’ equity (insolvency risk) and high leverage, and cash flows that are positive in operations but volatile with weak/declining free cash flow.

Income Statement

Vodafone Idea Ltd has shown persistent negative margins across multiple years, with a net income that remains negative. The most recent year saw a slight improvement in EBITDA, but overall financial performance remains weak with declining revenue growth and substantial losses impacting profitability.

Balance Sheet

The balance sheet of Vodafone Idea Ltd reflects a challenging financial position with substantial negative stockholders' equity, indicating insolvency. High leverage is evident with the debt-to-equity ratio being negative due to the negative equity, suggesting significant financial risk.

Cash Flow

Cash flow performance shows some positive trends, such as positive operating cash flow. However, free cash flow has seen significant volatility and negative growth in the most recent year, indicating challenges in maintaining consistent liquidity and cash reserves.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	442.28B	434.56B	425.73B	421.43B	384.98B	419.38B
Gross Profit	214.50B	190.86B	182.55B	183.19B	175.76B	188.21B
EBITDA	138.32B	115.99B	105.53B	102.27B	93.12B	104.30B
Net Income	-259.08B	-273.83B	-312.38B	-293.01B	-282.45B	-442.33B
Balance Sheet
Total Assets	1.89T	1.98T	1.85T	2.07T	1.94T	2.03T
Cash, Cash Equivalents and Short-Term Investments	99.40B	63.10B	1.68B	8.95B	14.59B	3.53B
Total Debt	2.33T	2.33T	2.44T	2.38T	2.14T	2.02T
Total Liabilities	2.71T	2.68T	2.89T	2.82T	2.56T	2.42T
Stockholders Equity	-824.60B	-703.20B	-1.04T	-743.59B	-619.65B	-382.28B
Cash Flow
Free Cash Flow	36.21B	-23.52B	192.12B	132.47B	112.75B	103.55B
Operating Cash Flow	104.72B	76.53B	208.26B	188.69B	173.87B	156.40B
Investing Cash Flow	-17.92B	-167.01B	-19.07B	-54.14B	-57.30B	10.75B
Financing Cash Flow	-80.69B	91.37B	-189.80B	-146.79B	-105.54B	-167.31B

Vodafone Idea Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IDEA, the sentiment is Negative. The current price of 11.27 is above the 20-day moving average (MA) of 10.03, above the 50-day MA of 10.60, and above the 200-day MA of 9.04, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 38.12 is Neutral, neither overbought nor oversold. The STOCH value of 23.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IDEA.

Vodafone Idea Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDUSTOWER	79 Outperform	₹1.15T	15.55	―	―	7.80%	26.53%
TATACOMM	67 Neutral	₹404.79B	35.60	―	1.39%	4.94%	49.05%
RAILTEL	66 Neutral	₹87.07B	47.77	―	0.79%	29.92%	22.87%
BHARTIARTL	64 Neutral	₹10.52T	48.36	―	0.75%	25.17%	212.83%
BHARTIHEXA	64 Neutral	₹792.55B	48.07	―	0.78%	―	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
IDEA	45 Neutral	₹1.01T	-3.48	―	―	3.81%	39.18%

Vodafone Idea Ltd Corporate Events

Vodafone Idea Schedules Investor Meetings in Singapore and Hong Kong

Vodafone Idea Limited has announced that its representatives will meet institutional investors in a series of one-on-one and group sessions scheduled in Singapore on 16 March 2026 and in Hong Kong on 17 March 2026. The company emphasized that no unpublished price-sensitive information will be shared during these interactions and noted that the investor presentation for these meetings is already available on its website, underscoring a commitment to transparent and compliant engagement with the investment community.

Vodafone Idea Discloses Independently Assigned ESG Rating of 66 for FY 2025

Vodafone Idea Ltd disclosed that NSE Sustainability Ratings and Analytics, a SEBI-registered ESG rating provider, has independently assigned the company an ESG score of 66 for FY 2025. The rating was given voluntarily by NSE Sustainability, without engagement from Vodafone Idea, based solely on information available in the public domain, and the disclosure underscores growing investor focus on ESG performance within India’s telecom sector.

The company has made this ESG rating information available on its website, signaling an effort to increase transparency around its sustainability profile. While the rating is externally initiated, its public communication may influence stakeholder perception of Vodafone Idea’s environmental, social, and governance practices and could factor into assessments by investors and regulators tracking ESG metrics in the industry.

Vodafone Idea Board Clears Q3 FY26 Results as DoT Confirms AGR Dues at Rs 87,695 Crore

Vodafone Idea Limited’s board has approved the unaudited standalone and consolidated financial results for the third quarter and nine months ended 31 December 2025, which have undergone a limited review by the statutory auditors in line with SEBI’s regulatory requirements. The company also disclosed that India’s Department of Telecommunications has confirmed its adjusted gross revenue (AGR) dues frozen as of 31 December 2025 at Rs 87,695 crore, an amount that remains subject to reassessment, underscoring the continuing material impact of legacy regulatory liabilities on the telecom operator and its stakeholders.

Vodafone Idea Amends Promoter Agreement to Discharge Merger-Era Contingent Liability Mechanism

Vodafone Idea Ltd has executed an amendment agreement with its promoter group, the Vodafone Group shareholders, modifying the existing 2017 Implementation Agreement that was put in place at the time of the merger of erstwhile Vodafone India and Idea Cellular. The amendment formalises the discharge of the contingent liability adjustment mechanism (CLAM) created under the original merger terms, under which Vodafone Idea had recognised a maximum receivable of Rs 8,369 crore from Vodafone Group Promoters, with a current capped balance of Rs 6,394 crore still recorded as receivable. By clarifying and updating the treatment of this significant contingent liability arrangement with its promoters, the move helps tidy up a key legacy merger construct, offering more transparency around Vodafone Idea’s balance sheet and the financial commitments between the listed entity and the Vodafone Group.

Vodafone Idea to Appeal GST Order Over Alleged Excess Input Tax Credit

Vodafone Idea Limited has disclosed that it has received an order from the Assistant Commissioner, Central Goods and Services Tax & Central Excise, Patna West, under Section 73 of the CGST/SGST Act, 2017, confirming a tax demand with interest and a penalty of Rs 36.67 lakh related to alleged excess availment of input tax credit. The company has stated that it does not agree with the order and intends to file an appeal, indicating a limited but non-negligible financial exposure while signaling to investors and stakeholders that it will actively contest the indirect tax claim rather than accept the proposed liability.

Vodafone Idea contests Rs 795 crore GST order on licence fee and spectrum charges

Vodafone Idea Limited has disclosed that the Deputy Commissioner of State Tax, Andheri Division, Mumbai, has passed an order under Section 74 of the CGST/MGST Act, 2017, confirming a demand, interest and a penalty totalling approximately Rs 795.6 crore. The demand relates to alleged tax liabilities on additional licence fees and spectrum usage charges for the financial year 2018–2019. While the company has acknowledged that the maximum financial impact corresponds to the tax demand, interest and penalty levied, it has stated that it disagrees with the order and intends to pursue appropriate measures to seek rectification or reversal, signalling a potential legal or administrative contest that could influence its near-term tax outflows and compliance landscape.

Vodafone Idea Disputes GST Order Imposing Rs 4.16 Crore Penalty

Vodafone Idea Limited has disclosed that it has received an order from the Deputy Commissioner, Large Taxpayer Unit, West Bengal, under Section 73 of the Central and State Goods and Services Tax Acts, confirming a penalty of Rs 4.16 crore along with associated tax demand and interest. The order stems from alleged excess availment of input tax credit and payment of tax under an incorrect head, and while the maximum financial exposure equals the tax, interest and penalty levied, the company has stated it disagrees with the order and plans to pursue appropriate remedies for its rectification or reversal, signalling an ongoing tax dispute that could marginally affect its financials and underscores continuing regulatory scrutiny on large telecom operators.